Nexen Inc. has cleared all hurdles in its $15.1-billion
(U.S.) deal to be acquired by CNOOC Ltd. after clinching U.S regulatory approval.

The Calgary-based global oil and gas company said Tuesday it has received
approval from the Committee on Foreign Investment in the United States, or
CFIUS, which had been closely studying the transaction.

Late last month, Chinese giant CNOOC and Nexen extended a deadline to
complete the takeover as they awaited U.S. approval.

The largest Chinese overseas takeover in history, the deal had already been
approved by regulators in Canada, the United Kingdom, the European Union and
China.

CFIUS’s mandate includes assessing the impact of financial transactions on
U.S. security, a review that turned out to be lengthy in the case of the CNOOC
takeover.

State-owned CNOOC was forced to withdraw and refile its application after an
initial 75-day review window expired in November.

The CNOOC deal prompted widespread discussion about China’s role in the
Canadian energy industry.

As it approved the Nexen takeover, the Canadian government issued rules that
largely block further acquisitions in the oil sands sector by foreign
state-owned enterprises.

Shares of Nexen added 56 cents to close at $27.43 on the New York Stock
Exchange, close to the $27.50-per-share offer price.

Some of Nexen’s production – on the U.S. Gulf Coast – is politically
sensitive.

There has been speculation from some observers that Nexen might have to
dispose of some of its U.S. assets in order for the deal with CNOOC to go
through, especially given the vigilance the United States has shown regarding
Chinese investment in areas of security concern such as energy and
telecommunications.

Nexen did not say in its news release if Washington imposed any conditions,
and the company didn’t respond to requests for further comment.

The company said the transaction is expected to close the week of Feb. 25 and
that it’s subject to the usual closing conditions.

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